FxWirePro: Gold trades higher on weak U.S dollar, good to buy on dips

• Gold recovered sharply yesterday from the minor low of $1308. The yellow metal jumped almost $22 on account of steep selling in U.S dollar on rumors that China will slow purchase of U.S bond. US dollar index shows almost 70 pips from minor to pat 92.64. The yellow metal hits high of $1330 and is currently trading around $1327.
   
• Chicago Fed president Evans said that he prefers to hold rate till mid -2018 before rising it again. US PPI data came slightly weaker than expected. It has declined for the first time since Aug 2016. The PPI for final demand slipped 0.1% last month compared to 0.4% increase for the past two months.
   
• On the higher side, gold is facing strong resistance at $1330 and any break above will take the yellow metal till $1339 (161.8% retracement)/$1350.
   
• The near term support is at $1316 (23.6% fib) and any violation below will drag the metal to next level till $1312 (55- 4H EMA)/$1305 (Jan 3rd low) /$1296 (100- 4H MA).  Minor weakness below $1288. Any break below $1288 will drag the gold till $1280/$1270

It is good to buy on dips on $1315-16 with SL around $1308 for the TP of $1330/$1338.